Ready for a crazy stat about customer acquisition? It costs a business around 5-25 times more to acquire a new customer than it does to sell to an existing one, according to Harvard Business Review. To further emphasize the importance of maintaining existing customers, the customers you already have spend upwards of 67% more than a brand-new customer!
Plain and simple: the numbers show that customer loyalty truly pays off
And, customer loyalty programs are one of the best ways to drive that loyalty.
Done the right way, loyalty programs can be one of the best ways to create advocates for your auto shop. Employing loyalty programs that offer customers rewards and recognition for choosing your auto repair or tire shop, is one of the biggest ways to impact your bottom line and increase customer loyalty to turn them into lifelong customers. Who doesn’t want that?
Customer loyalty reflects a customer’s willingness to buy from a brand again and again. It’s the result of a positive customer experience, high customer satisfaction, and the perceived value of the products or services they receive from you.
6 Benefits of Customer Loyalty Programs
- Customer retention. If your customers are loyal, the chances of leaving are so much lower! Why would they leave? They’ve found what they were looking for and are satisfied and trust you.
- Competitive advantage. Loyal customers choose you over the competition. They won’t even bat an eye driving past the other auto shop down the street—all they see is you. You could say they are the emoji with the heart eyes.
How do you turn customers into superstar advocates who can’t stop talking about your auto shop? Learn how to improve customer satisfaction with these 4 tips.
- Repeat business. The business keeps on coming from your existing customers. WIth BAYiQ, annual visits increase by 2.8X! On average, customers see a 10X return on their investment with BAYiQ.
- Improve your bottom line. Guess what repeat customers mean? Increased revenue. And that means improved profitability. Oh yeah.
- They refer more customers! In this case, it’s a great thing to get people talking about you or your business. Word of mouth marketing is of no cost to you and can be the most effective way to drive new business. Think about how many times you go to a restaurant or to see a movie that someone else recommended to you? People are much more likely to choose a service provider that was personally recommended to them.
- You get valuable feedback. We can all better ourselves by getting constructive criticism and meaningful feedback. Loyal customers provide insights and can shed light on any problems or missed opportunities.
To keep your customers coming back to your business, effective loyalty programs matter most. They’re a powerful way to connect with your customers, attract new business and ultimately, grow sales. Keeping your customers satisfied and engaged to really build that loyalty and trust will set you apart from the rest.
See How BAYiQ Can Set You Apart From the Rest. Whether you have one shop or 20, 100 customers or 5,000, there's no doubt that an effective customer retention, loyalty & rewards program can impact your bottom line in the best way. See a behind-the-scene look into the BAYiQ software and results in our quick 5-minute demo.